Later, it pared some of the gains to settle at 22,876.54, up by 118.17 points, or 0.52 per cent.

"Nifty is showing continued strength on the upsides and is able to hold well above 6800 level for last three trading sessions. Technically, markets are showing optimism and buying is likely to continue in coming sessions," Nidhi Saraswat, Senior Research Analyst, Bonanza Portfolio Ltd, said.

On the other hand, IT major Wipro fell for the third session posting losses of 1.19 per cent on lower than expected revenue guidance. NTPC and Tata Motors too fell up to 1.49 per cent.

The capital goods sector index gained the most by rising 1.49 per cent to 12,761.14 followed by banking index by 1.12 per cent to 15,012.05. Healthcare index rose by 0.44 per cent to 10,571.61 and FMCG index by 0.41 per cent to 6,978.05.